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Yabyabin, Jed Cedric A.

Reflection Paper: What Is
Strategy?

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What makes strategy different from operational effectiveness (OE)? Is OE necessary to effective strategy formulation and implementation? Why?
Porter (1996) describes strategy as the creation of unique and valuable positioning that requires a set of different activities to make competitive trade-offs and strategic fit that creates competitive advantage and superior profitability. Operational effectiveness, on the other hand, refers to performing similar activities better than the rivals through benchmarking and incorporating best industry practices
(Michael E. Porter, 1996).
Porter (1996) discusses that strategy aims to position the company in performing different activities from its competitors or perform similar operational activities in different ways; whereas operational effectiveness presents how the company compares, acquires, and improves similar operational functions of its competitors.
Although operational effectiveness may have its benefits of building efficiency and productivity, it is insufficient and unnecessary to the formulation and implementation of strategy. This is because it drives competitive convergence (Michael E. Porter, 1996) that makes the company homogenous to the other companies in the same playing field for incorporating same operational activities (despite making them “better”). With this, competitors can and may imitate certain management practices, technologies, and other tactics to have more efficient ways in meeting the needs of customers - which presents a big threat. This offshoots the company to having no advantage over its rivals.
Taking any of the sample cases in Porter’s article (e.g. Ikea, Southwest, etc.), describe that particular case’s strategy.
In the article of Porter (1996), he presents Ikea, and other companies, as an example to

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